Political: We will be selling physical products (clothes) therefore due to the election coming up new laws could potentially lead to things such as higher tax. Which would mean people would have a low disposable income. Resulting to no money to spend on our collaboration.
Economical: Our brand sells clothing. Although we are not premium priced, companies that sell clothes at discounted prices for example TK MAX or even online fast fashion for cheap prices like ecommerce businesses may be threat for us. Also the British pound is very strong at the moment therefore if the clothes are made in Sri Lanka for example. We would be paying workers less for more.
Social: Due to social media more people are likely to want to stay in trend and want to follow the latest fashions. Our clothes are extremely trendy and we have used many marketing methods to promote that. As well as this due to social media people are more likely to shop online hence why we have our website accessible to use on phones.
Technological: we can interact with our customers using many technological ways such as all the forms of social media we use, our mailing list and through online competitions.
Legal: Working with such a big company such as 'SkinnyDip London' could be risky as many big companies tend to avoid tax. For example Google. Therefore this could affect the collaborations legality.
Environmental: Weather issues such as a storm could potential knock down one of the factories we use to make our clothes in. In addition our factories will contribute to pollution.
PESTLE
PEstle
The political factors effecting Strictly Denim consist of Brexit. Brexit isn’t necessarily a major issue for our business as Brexit means the UK can ‘independently pursue international trade deals with China, India and the Us’. This means when sourcing manufactures for our stock the process would run a lot smoother. Another political factor could be tax rising up. The higher the tax on items means the less money our consumers have to spend on our products. Our target audience already have a low disposable income so high tax’s wont allow enough room for our consumers to spend on our latest collections.
An economic factor that could impact Strictly Denim would be cheaper brands. As much as Strictly Denim is affordable we do not do discounted prices for example brands like T.K MAXX may be a threat to us. As well as this competition In general. For example Levi’s is a well known brand this could possibly limit the amount of profit Strictly Denim takes in, as people may save lots of money to purchase one pair of Levis jeans based on reputation. Leaving little money to spend on our brand.
POLITICAL
ECONOMICAL